Lean thinking in the supply chain operations and its integration with customer order decoupling point and bottlenecks

Abstract: The thesis study reveals that the position of bottleneck is a significant importance in supplychain process. The modern supply chain is characterized as having diverse products due tomass customization, dynamic production technology and ever changing customer demand.Usually customized supply chain process consists of an assemble to order (ATO) or make-to-order (MTO) type of operation. By controlling the supply constraints at upstream, a smoothmaterial flow achieved at downstream. Effective management on operational constraint willresults in speed up customer delivery. A throughout evaluation of demand constraints isnecessary to gain the competitive benefits over the entire market. The study is based on a conceptual model, comprises of engineer to order (ETO), MTO, ATOand make to stock (MTS) separated by decoupling point. All these represent the particularprocess in supply chain. The important perspective of this study is that the constraints areallocated in particular part of supply chain, which will become the supply chain moreversatile. This thesis study explains the use of detail capacity and material planningtechniques in upstream, midstream and downstream of the customer order decoupling supplychain. A shifting bottleneck concept has been studied in a better way, in order to keep relativestability and reduce the complexity in production management. This thesis study tries to findout some possible factors that reduce the bottleneck shifting in supply chain. This research provides the guideline about the implementation of lean, leagile and agility incustomized supply chain. Also key factors are discussed which are necessary to achieve theseparadigms. Basically leagile is the mixture of both lean & agile strategies. Leagile is inclinedtowards sustaining the flow for mixed-model production. Its intent is to achieve theefficiencies in mass production, while producing a medium variety of products. The focus inleagile strategy is to gain effective control at shop floor planning, including capacity andmaterial planning systems.Different relevant aspects of standardization and customization are considered through theproduction processes. In addition to this rate base, hybrid and time phase material planningtechniques are sorted in different supply chain parts through multiple level of bill of material.